Currency held by the nonbank public plus banks' vault cash plus banks' deposits at the Fed equals

Question

Quizplus · Accepted Answer

The currency held by the nonbank public, banks' vault cash, and banks' deposits at the Fed are all components of the monetary base. The monetary base, also known as high-powered money, is the total amount of money in circulation in the economy and is used by the Fed to influence the money supply and control inflation. Therefore, the correct answer is C) the monetary base.

Currency Held by the Nonbank Public Plus Banks' Vault Cash